Why is checking my state pension importance?
Regularly checking your state pension position can help optimise your entitlement. It would be best to consider what other savings or pensions might be required for a long and comfortable retirement. To receive the full benefits of an entire state pension your National Insurance record must usually contain a minimum number of years. Also be aware the requirements for men and women differ. Menusually need at least 30 qualifying years of NIC payments if born between 1945 and 1951 and 44 if born before 1945. Women usually need at least 30 qualifying years if born between 1950 and 1955 and 39 if born before 1950. If you were born after 1951, you will get the new state pension, which only needs ten qualifying years of NIC Payments to receive a state pension
Those individuals that have fewer than the minimum number of years will not bbe entitled to the full basic State Pension.
The enhanced Check Your State Pension forecast service is available online. The service can be found on GOV.UK at the following webpage: https://www.gov.uk/check-state-pension
How to manage your pension
The new digital service was jointly created by HMRC and the Department for Work and Pensions (DWP). It has been enhanced to include a fully end-to-end digital solution.
The service allows most people under State Pension age to View their pension forecast and identify gaps in their National Insurance Contributions (NICs) record. This will be helpful for taxpayers looking to make voluntary NIC contributions to increase their entitlement to benefits, including the basic State Pension or the new State Pension.
Can I make NIC voluntary contributions?
HMRC usually allows, you to pay voluntary contributions for the past six tax years. The deadline is the 5th April each year. However, there is currently an opportunity for people to make up for gaps in their NICs for the tax years from April 2006 to April 2016 as part of transitional measures to the new State Pension. The deadline has been extended several times and was most recently extended until 5 April 2025.
How will the new online service help me with my NIC payments?
The launch of HMRC’s online service will help speed up this process. HMRC’s helplines have been struggling to meet the demands for information and processing claims to pay additional NIC contributions.
What are the rates for NIC payments?
HMRC has also confirmed that all relevant voluntary NIC payments will be accepted at the rates applicable in 2022-23 until 5 April 2025.
Contact us.
Moore South’s dedicated personal tax team can help you build the foundations for a straightforward retirement, helping you ensure that you qualify for the maximum available state pension. Our team can review your NIC history with you and identify any gaps that could cause you to not be eligible or that you should pay to make sure your covered. For more information on how Moore South can help you on your journey to an easy retirement contact us today.